Makgomo Chrome is a valuable asset that supports community development
Makgomo Chrome has taken note of recent reports in local media and is disappointed with statements that are deliberately misleading and misrepresent the truth in relation to community benefits from the proceeds of the Makgomo Chrome project.
These reckless and unfounded allegations being shared on public platforms about the company and its leadership place at risk the very foundation on which the company was established, the development and upliftment of local communities.
Makgomo Chrome remains a valuable community asset that is serving as a catalyst for positive change and development in local communities.
The company generates revenue by extracting, marketing and selling chrome produced as a by-product from Marula mine tailings. The proceeds from Makgomo Chrome are distributed to the shareholders, one of which is the community-owned Marula Community Chrome (MMC) whose primary responsibility is to identify and implement projects that seek to uplift the six communities and members of those communities.
These funds are distributed proportionally according to an agreement signed by the communities themselves and determined by each community’s footprint within the chrome resource. This agreement also provides a formal structure through which communities can raise their concerns and put alternative distribution strategies to the Board for a vote.
From time to time, Makgomo Chrome is faced with allegations by individuals who claim to represent local communities but are not using the agreed community structures to address their concerns, which raises questions around individual motives. These actions threaten the sustainability of the business, which in turn means that funding intended for community benefit is at risk.
In 2017/2018, we experienced intense and devastating community disruptions. These were only brought to a welcome end when the communities came together, under the leadership of Kgoshi BM Mohlala, agreeing to end all hostilities and work together to advance socio-economic development in the communities.
The agreement resulted three specific outcomes.
The first objective was to revisit the composition, capacity, and governance processes at MCC to ensure that the agreed community ownership structure is respected and that the Makgomo Chrome dividends are more effectively deployed to benefit the six communities. From its inception to 2017, there was little in the way of community development through the MCC structure, under the then leadership of Mr M S (Shadrack) Matjie. It was only following the intervention by the late Kgoshi Bethuel Mohlala which brought the communities together under a new agreement and saw the appointment of new leadership teams at MMC and Makgomo Chrome that we have seen a real commitment to community development and the implementation of some key community projects.
These projects include, among others, an agricultural support programme for small-scale cattle farmers, an internet project to enhance community connectivity at schools and public hotspots across the Four Farms, and a credit assistance programme to support community members and small businesses in times of need when they cannot access financial assistance anywhere else. In addition, MCC recently authorised free home energy packages for 600 needy families in the six communities. These energy packages consist of a solar unit to power essential services such as lights and phones as well as a gas stove and gas to enable continuity during load shedding.
The second focus area was to end the competitive chrome tendering processes between different local business consortiums (which included some Magoshi, community leaders and local businessmen) which were very often the cause of conflict and held little direct developmental benefit to local businesses and communities. It was agreed to rather export all the chrome produced by Makgomo Chrome to unlock extra sales revenue for the business that would translate into additional benefit for the communities. However, an arrangement was agreed where these business consortiums receive a small portion of the additional benefit on terms and conditions which are reviewed annually with Makgomo to compensate for the revenue lost from the previous tendering process and to assist with capacitating the businesses so that they can have a bigger impact in the communities. Importantly, it was also agreed that key business functions at the chrome plant, such as transportation, cleaning, administration, security, etc, would be prioritised for local participation to drive small business development in local communities, ultimately driving economic growth and sustainability.
Thirdly, and most importantly, to address the past while finding a way to move forward positively and collaboratively, an independently led reconciliation process was undertaken. Community members were invited to share their experiences of the violent disruptions and funds were set aside by Makgomo Chrome to compensate those who had suffered loss and destruction from these actions. It should be noted that Mr Barclays Thobejane, who is making scurrilous and unfounded claims of mismanagement, was one of the community members compensated in the reconciliation process.
Makgomo Chrome, Marula Community Chrome and the respective leadership teams have committed to working with all legitimate structures on the Four Farms, to both address community concerns and to enhance community development. It is deeply unfortunate that some individuals have chosen to wilfully distort the historical and current context of the Makgomo Chrome project, especially since many of these individuals have been part of these processes, because if we cannot ensure the stability and sustainability of the Makgomo Chrome project, the livelihoods of the communities who depend on the proceeds from the chrome operation will be at serious risk.
